Directors’ Duties And Personal Liability For Competition Breaches

Introduction

In August 2026, the CCI fined two agro-input dealer associations for running a cartel, The case began when Ulink Agritech complained that they had boycotted online agri-input platforms. Four individuals were also held liable. This shows that a company or association cannot absorb the blame of the people running it.

For directors, this leaves a question that the Companies Act, 2013 does not clearly address. It says nothing about competition compliance expressly. But the way CCI applies Section 48 means that in practice, directors are expected to look out for competition law breaches. The Companies Act requires directors to act in the company’s best interests, while the Competition Act imposes personal liability for conduct that harms market competition. This blog argues that the duty of care under Section 166(3) should be read to include competition law oversight, and that Section 48 of the Competition Act supports this reading.